I.

1
PROCUREMENT MANUAL


I. Introduction................................................................................................................... I.1

II. Frequently Used Abbreviations and Codes .................................................................II.1

III. Time Schedules. ..........................................................................................................III.1

IV. General Purchasing
Open Market............................................................................................................... IV.1
State Contract............................................................................................................. IV.1
Exceptions
Emergency Purchases.................................................................................... IV.2
Gasoline & Oil ............................................................................................... IV.2
Vehicles.......................................................................................................... IV.2
Single Source................................................................................................. IV.3
Hidden Damage............................................................................................. IV.3
Weekend/Holiday Purchases........................................................................ IV.4

V. Approvals.....................................................................................................................V.1

VI. Preparation & Submission of Requisitions................................................................. VI.1
Attachments

VII. Purchase Order..........................................................................................................VII.1
Attachment

VIII. Quote Bid Sheet........................................................................................................VIII.1
Attachment

IX. Goods Receipt............................................................................................................ IX.1
Attachment

X. Sale of Farm Produced Commodities...........................................................................X.1

XI. Conveyance of Natural Resources............................................................................. XI.1

XII. Acquisition of Surplus Property................................................................................XII.1

XIII. Cannibalization ........................................................................................................XIII.1

XIV. Maintenance of State Vehicles................................................................................ XIV.1

XV. Workshops - Made Products.....................................................................................XV.1

XVI. Sale of Surplus Equipment...................................................................................... XVI.1

I.2
XVII. Pool Vehicles for Central Office............................................................................XVII.1

XVIII. Sale of State Land ..............................................................................................XVIII.1

XIX. Professional and Consultant Contractual Services.................................................. XIX.1
Attachments

XX. Department Leases....................................................................................................XX.1
Attachment

XXI. Telecommunication Equipment Procedures............................................................ XXI.1

XXII. Insurance................................................................................................................XXII.1

XXIII. Vehicle Safety Program........................................................................................XXIII.1



I.3
INTRODUCTION

The Function and Requirements of the Procurement Section

All procurement functions have essentially the same fundamental goal: obtaining maximum value
for the tax dollar. Formal objectives and guidelines must be delineated in order for management and
user to understand and realize the common goal; savings. It must be understood that because of the
complexity of government, its checks and balances and statutory limitations, the process can seem
awkward at times. While the Department consumes millions of dollars of goods each year, it is to be
done in a manner consistent with good planning, proper procedure and maximum dollar value.

Goods and/or services for use by the Department, in order to be consistent with the following
guidelines, must not be acquired without the prior knowledge of or approval for such goods and
services. Approval of the goods or services will be made known by the issuance of a purchase order
after normal and specified guidelines are completed. Only in this manner can the Administrative
Division and Procurement Section be able to control, for savings sake, the $70 million plus dollars
spent on needed goods and services.

The procurement staff should be familiar with the market place and be aware of the needs of the user.
All areas of the department should work together, in a cooperative effort, to assure goods and
services delivered are what is needed. The vendor must understand our needs through complete and
proper specifications provided by the user/unit. This can only happen when total support and
understanding is at work within the department. The procurement staff will assist the user, as needed
to acquire the specifications for goods and services.

The guidelines set forth in this manual are promulgated to improve service and support, maximize
dollars spent, control inventories, optimize systems and facilitate planning. The controls listed are
not for hindrance but an enhancement to effective communication, consistent quality and economic
delivery of the needed goods. All of these things are to be accomplished while being consistent and
in compliance with Act 482 of 1979, Arkansas State Procurement Law, Executive Order 98-11, and
all Department administrative regulations and procedures.
II.1
FREQUENTLY USED PURCHASING ABBREVIATIONS AND DEFINITIONS

Purchasing Documents

PO - Purchase Order
PR - Purchase Request



Purchase Codes

CB - Competitive Bid Three quote bids are obtained and awarded
MB- Minority Competitive by Central Office to the lowest bidder.
Bid Dollar range $5,000 - $25,000. At least
one quote must come from a minority
vendor. If no minority vendor is
available for particular class code, a
fax on demand must be attached to quote
bid sheet.

EL- Exempt by Law Examples: Taxes, Postage, Licenses,
Advertising in Newspapers, and Fees

EM- Emergency Commodities or services which, if not
MM- Minority Emergency immediately procured, will endanger
Purchase human life, health or functional
capability of a State agency. Requires
three quote bids.

RP- Purchase for Resale Procurement of commodities for resale.

QC- Quote Constitutional Procurement of printing and supplies not
on state contract and costing $500 or
less. Three quotes are required.

SO- Small Order Used on most commodity purchases where
MO- Minority Small Order the cost is $5,000 or less.

SS- Single Source Procurement available from only one
MS- Minority Single Source source.

ST or SF - Formal Bid Dollar range $25,000 and up. Procurement
made by issuance of a outline agreement by
Office of State Procurement.

BU- Unsuccessful Bid No satisfactory bids were received.

II.2
WS- Workshop Procurement of commodities from non-profit
workshops.

DO- Delegation Order Authority given by State Procurement
Director for purchase of certain exempt
items.

III.1
TIME SCHEDULES

Purchase Request Time Requirements

Type Request

Small Order Approvals Required: As needed
$1.00 - $5,000 Central Office Processing Time: 3 working days
Bid Time: N/A
Vendor Delivery Time: Vendor Availability

Purchases Approvals Required: As needed
$5,000 - $25,000 Central Office Processing Time: 5 working days
Bid time: 2 days
Vendor Delivery Time: Vendor Availability

Formal Bid Approvals Required: As needed
Central Office Processing Time: 3 working days
Bid Time: 30 days after invitation for bid
is released by State Procurement; 5 days for
State Procurement to prepare invitation
Vendor Delivery Time; As specified on bid
request

Lease of Offices, Approvals Required: As needed (Director)
Buildings, Land Central Office Processing Time: 3 working days
Bid time: N/A
Vendor Delivery Time: Review by State Building
Services, requires their approval

Lease of Approvals Required: As needed
Equipment Central Office Processing Time: 5 working days
Bid Time: $5,000 and under - N/A
$5,000 - $25,000 - ADC quote 1 day
$25,000 and up - State Procurement
Formal Bid Procedure, 30 days
Vendor Delivery Time: Depends on availability
of item

IV.1

GENERAL PURCHASING

A. Goods and services purchased are divided into two groups:

1. Open Market: When goods and services are purchased where
they can be obtained at the lowest price, desired delivery
and needed quantity.

a. Types of Authority

(1) Up through $5,000: Purchase from vendor, after
receipt of approved purchase
order. No quotes required -
product or service should be
obtained from vendor giving
most favorable price and
conditions.

(2) $5,000 - $25,000: Obtain three quote bids,
awarded by Central Office to
lowest bidder by issuance of
purchase order.

2. All State Contract: These items are on contract to a supplier who has bid lowest on a
contract for certain goods. GOODS CANNOT BE PURCHASED FROM
ANOTHER VENDOR, WITHOUT A WRITTEN LETTER OF WAIVER FROM
THE VENDOR WHO HAS THE CONTRACT. This will be done by the
Department of Correction Procurement Office after receiving your request and in
advance of the actual purchase. The exception is treated as an emergency.

ADC initiated contract request: These purchases require the completion of a
Department requisition and will need to be submitted a minimum of 60 to 90 days
prior to the time needed for delivery.

a. Type of Authority:

(1) $25,000 and Up: Request for bid with detailed
specifications prepared by
Central Office from your
requisition and forwarded to
State Procurement or State
Building Services for formal
bidding. Normal bid time is
20-30 days.

(a) Firm Contracts: For specific items of fixed quantities;
IV.2
delivered at specified times. The
state contract is the order to deliver;
no PO required.

(b) Outline Agreement: For specified items with estimated
quantities and estimated delivery
times. Contracts are normally for
one year period. A PO must be
issued to the vendor to obtain
delivery.

B. Exceptions:

1. Emergency Purchases: The acquisition of commodities or service which if
not immediately initiated, will endanger human life,
health, state property, or the functional capability of
state agency. Failure to plan does not constitute an
emergency. Emergencies require that three quote bids
be taken and at least a verbal approval of the purchase
be obtained by Central Procurement from the Office
of State Procurement. Follow-up letters to State
Procurement must be signed by the Director. These
purchases are reviewed by the Arkansas Legislative
Council. These purchases will be handled through the
Procurement Office during normal hours on an
emergency basis. On non-office hours, these
purchases will be handled through the unit wardens or
their designee.

2. Gasoline & Oil: State Procurement Director has delegated authority
to Agency to purchase after receiving three
quotation bids. All quote bids on gasoline, diesel
and oil will be taken at Central Office Procurement.

3. Vehicles: DF&A maintains a database of mileage and
maintenance costs for each vehicle. In order to
replace a vehicle it must be justified by: 1) Having
reached 75,000 miles; 2) over 5 years old; or 3)
having or needing excessive repairs. Requests must
be approved by DF&A Administrative Services and
agency policy directives in accordance with the
Governors Policy Directive #3 prior to being
approved and ordered by State Procurement.

4. Single Source: Procurement which, by virtue of the performance
specifications, are available from only one source.
Brand names or design specifications are not
sufficient explanations for single source. All sources
IV.3
contacted which cannot supply must be noted in the
justification. These purchases will only be made
after approval from the Procurement Office. All
vendors contacted must be attached to purchase
requisition.

5. Hidden Damage: Procurement of certain products or services is
necessary at times when price is unavailable. This
is termed as a hidden damage request. At such
times, a hidden damage requisition should be
completed explaining the need with an estimate of
cost. Requisition will be submitted to
the Procurement Office prior to any commitment
being made for the equipment to be repaired or the
services to be performed (the estimated cost is to be
entered in to AASIS in order to pre-encumber the
budget). At this time, the Procurement Office will
issue a purchase order number to cover the job
needed. At the point that the complete work will
exceed the estimate, the services are to be halted, a
written estimate obtained and forwarded to the
Procurement Office or Budget Office for approval.
Hidden damage is limited to repairs or maintenance
for vehicles, equipment and exiting systems only.
Hidden damage is not intended to correct a failure
to plan situation, restock inventory or add new
equipment to an existing system. Example of
hidden damage repairs are: vehicle
repair/maintenance; parts needed to repair boilers,
freezers, air conditioners (must be limited to parts
needed to repair equipment only not for parts
needed for inventory); phone repair (may not be
used for new phone service or equipment). If
hidden damage is of an emergency nature and there
is not time to submit a requisition, then it may be
handled under emergency procedures.
IV.4

C. Weekend/Holiday Purchases: For Emergency Use Only

1. Because with the AASIS System, weekend/holiday purchase orders may only be
authorized by appropriate Deputy Director, Assistant Director, Unit Wardens or their
designee. When a weekend purchase is necessary, the units requisition number will
serve as the authorized purchase order number. The unit must submit the requisition,
invoice, receiver, and supporting documentation to the Central Procurement Office
no later than 10:00 a.m. on the first workday following a weekend or holiday.
Central Procurement will enter the purchase order into AASIS referencing the unit
requisition number. This same procedure will apply to emergency situations where
power is out due to ice storms, tornadoes, etc.

Please remember that the dollar guidelines for weekend purchases are the same as
routine purchases. Therefore, weekend purchases in excess of $5,000 must be quoted
out. Department policy states that weekend purchases cannot exceed $10,000. All
weekend purchases will be scrutinized closely.
V.1

APPROVALS

Approval Requirements

All requests submitted for goods and services shall require authorization by warden or manager level
personnel.

1. Unit wardens, managers or supervisors may designate/delegate personnel to handle such
authorization as needed. All requests will be processed only when authorization
signature is present or they will be returned to the unit.

2. Construction and maintenance requests shall be approved by the Administrator of
Construction and Maintenance.

3. Capital expenditures (equipment generally costing $2,500.00 or more or that which
must be added to inventory) shall be approved by the Management Team and/or
Director and Board of Corrections as maybe required by Administrative Directive.
Exceptions:

a. Inmate welfare purchases $0-1,000.00 approved by Assistant Director of
Administrative Services.

b. Inmate welfare purchases $1,000.00 - 10,000.00 approved by the Director.

c. Inmate welfare purchases over $10,000.00 approved by the Board of
Corrections.

d. Farm and Industry purchases approved by the Deputy Director over that
area.

4. The Director shall approve all professional service contracts upon submission of the
prescribed forms.

5. Disclosure: In accordance with Executive Order 98-04, the Department of Correction
shall disclose any purchase orders, contracts or leases with any person, contractor,
company or entity that is controlled by or holds 10% or greater interest, be they a
member of the Arkansas General Assembly, a constitutional officer, board or
commission member, state employee or immediate family member.

This disclosure shall be for any purchase or contract exceeding $10,000. The
Department of Correction shall not split procurement or grants into two or more
contracts or grants to circumvent the limit stated.
V.2

Disclosure forms will be made available from the Procurement Section to all areas of
operation. Said disclosure forms must be completed and submitted to the
Procurement Section which, in turn, will submit to the Office of Disclosure and
Review prior to any agreement with a contractor, vendor or service provider.



VII.1
PREPARATION AND SUBMISSION OF REQUISITIONS


Requisitions should first be prepared on paper (see attachment). Requisition should include
suggested vendor, items needed, quantities needed, price and justification. Requisition should be
submitted to proper personnel (warden,supervisor, etc.) for necessary approvals. Warden/Supervisor
shall indicate their approval of the request by their signature on the paper requisition line directly
below the last item listed on the requisition. Once approvals have been obtained, unit business
manager should assign a requisition number specific to their unit (this number will be the AASIS
tracking number). The business manager should record the proper AASIS material number for each
item, the AASIS vendor number as well as the correct accounting information (general ledger
number, cost center, internal order, etc.) and AASIS delivery number. The business manager should
then enter the information from the paper requisition into AASIS using transaction ME51 (see
attached instructions).

Once all the information has been entered, the business manager will select the appropriate Central
Office Buyer. The buyer in turn will process the requisition into a purchase order or request further
information. The buyer may request a copy of the paper requisition in order to obtain further
approvals if necessary. Each additional required management level personnel shall indicate their
approval of the request by their signature on the requisition line directly below the
Warden/Supervisors signature.

Business manager shall retain copy of the signed paper requisition for audit review.
Wardens/Supervisors, ADC Internal Auditor, and Accounting Control Section shall be responsible
for random audit by comparing ASSIS purchase orders to original approved paper requisition.

All emergency request should be followed up by e-mail or phone call.

All IWF purchases require further approvals. These requisitions may be entered into AASIS but the
business manager should fax a copy of the paper requisition in order for the buyer to obtain the
approvals.

Requisitions for vehicle maintenance and/or repair (oil change, tires, etc.) should list the vehicle
license #as well as the vehicle mileage in the justification.

Requisitions for hidden damage should be processed as outlined in page IV.3.

Requests for items listed below should not be entered into AASIS by the business manager. Instead
the business manager should fax the paper requisition to Central Office Procurement for further
processing.
1. Fuel The business manager should fax the paper requisition to the buyer before 9:00 a.m.
The buyer will conduct a 3-quote bid and process a purchase order through AASIS.
The buyer will release the purchase order number to the vendor and schedule the
order. The buyer will notify the unit the successful vendor and purchase order
number. Because the exact gallons are unknown a printed purchase order will not be
available; therefore the request will be treated as a hidden damage purchase. The
business manager will forward the invoice and receiver to the buyer as soon as the
order is received.
VII.2

2. Capital Equipment All request for Capital Equipment are to be submitted by hard copy
requisition. All must be approved by management team and budget. Once approved, hard
copy will be sent to accounting control area for assignment of asset shell. After asset shell
number is assigned it will be forwarded to procurement for entry into AASIS. Unit or area
will be notified once P.O. is created. Unit or area will be responsible for placement of order
with vendor.





VII.1

PURCHASE ORDER

A purchase order is a document used to order materials and/or services. Purchase orders are
prepared for most commodities, materials and supplies ( see attachment).

Once a requisition has been approved, the buyer will create a purchase order in AASIS and obtain
the proper signatures. The purchase order is not official without the Procurement Manager's (or
designee's) signature. The procurement secretary will make file copies of the purchase order for
Procurement and the Goods Receipt Office and return the original purchase order to the unit/area for
placing the order with the vendor. The purchase order may be mailed, faxed, or phoned in to the
vendor at the business manager's discretion.

VIII.1
QUOTE BID SHEET


I. The quote bid sheet should be filled out when three quote bids are required and the
commodity being purchased costs $5,000 to $25,000.

A. Procedure for filling out Department of Correction Quotation Bid Sheet (see
attachment). This form must be filled out in its entirety. The numbers on
attachment correspond to the following:

1. Purchase order number - to be filled out after quote bid evaluation is made
by the Procurement Section.

2. Date - this is the date the quotes are taken from the vendor.

3. Shipped to - to be filled out specifying the Department of Correction, unit,
division and section.

4. Purchased for - enter location merchandise is to be used.

5. Requisition number will be the six digit number used to specify unit and
individual requisitions.

6. Vendor name, address and phone number.

7. Length of time prices are guaranteed.

8. Delivery time - how long it will take supplier to deliver the order.

9. How shipped -- will designate if merchandise is to be picked up or method
of shipment.

10. Description - this should describe what is needed, size, color, model, part
number and brand.

11. Quantities - should be the quantity needed or the unit specified.

12. Unit - each, box, pound, etc.

13. Price of item.

14. Vendor contact/person giving prices.

15. Commodity code must be noted as provided by State Procurement Office.

16. Employee taking quote will initial. Additional approval, as needed.

VIII.2
NOTE: At least one quote must come from a minority vendor. If no minority vendor is
available for a particular class code, a fax on demand must be attached to quote
sheet.

IX.1
GOODS RECEIPT


Each unit should delegate the responsibility of receiving to one person and choose a person to be a
back-up. The following steps should be completed in receiving merchandise:

(A) Receiving reports must be submitted to the Procurement Office within 48 hours of
receiving item or services.

(B) Enter the purchase order number, vendors name, description of items received, line
number, requisition number and quantities of items received.

(C) Signature of authorized persons receiving material.

(D) Materials and quantities not listed on purchase order or contract must not be
accepted by units. All items should be as specified.

(E) Receiving reports should be made on actual material received, not shipping tickets
or purchase orders.

(F) If receiving report is for a purchase order that is coded as equipment, each item of
equipment contained on the receiving report must be assigned an ADC property
control number by the unit inventory control officer.

(G) Make sure the merchandise belongs to you by comparing the customer number,
shipping address and purchase order number that will appear on bills of lading or
shipping receipts with the receiving documents. If the merchandise does not
belong to you, do not accept it. Have the delivery person take it to the designated
delivery point.

(H) Make sure the quantity to be received is correct by comparing the quantity
ordered column on your receiving document(s) with the quantity delivered
column on the shipping receipt (s). Then physically count merchandise to be
received to insure that the item(s) ordered do agree with the item(s) delivered. If
there is a shortage, note how many of BOTH your receiving document and the
delivery persons shipping receipt or freight bill. Then have the delivery person
sign your receiving document.

(I) Receiving office may not open cartons before signing receipt of delivery unless
containers show probable damage, but should be opened immediately thereafter to
inspect for concealed damage. Carefully examine all cartons on all six sides for
marks that might indicate concealed damage, e.g., cartons that have been opened
and resealed, puncture marks, crushed areas of cartons or other evidence that
contents may be damaged. Open and jointly inspect (with the delivery person) all
cartons that show visible damage and note fully on BOTH copies of the shippers
receipt or freight bill and have the delivery person sign your copy. It is necessary
that damage be noted before the receipt is signed. Do not reject the shipment.
Failure to note any damage will jeopardize our ability to collect a claim.
IX.2
Complete receiving documents, then forward to Procurement Section at which time
we will contact the vendor to settle any claim on damaged merchandise. Items
cannot be received COD.

(J ) After the shippers delivery slip has been signed for all cartons, make sure the
merchandise which has been delivered is correct as ordered by comparing the
description (s) on the receiving document (s) with the shipping receipts. Verify the
items listed on both the receiving and shipping copies by opening all shipping
cartons and physically observing item descriptions or merchandise received.

(K) If the common carrier that delivers the merchandise causes the damage to the items
delivered, a truck lines claim adjuster will be in contract with you. After the claim
report is completed, carefully read to make certain you agree with the report. If
you dont agree with the report, do not sign it. Call Procurement at 267-6999.

(L) Retain damaged articles and cartons until Procurement notifies you that the common
carrier will take possession of the merchandise for salvage. When salvage is
picked up, secure a receipt from the driver. Pick-up will take place within 30 days
from delivery or inspection date.

(M) If you are receiving only part of your order (part of order might be back ordered
compared to receiving documents), follow the previous detailed procedures up to
the point of sending receiving documents to Goods Receipt Section. Instead of
sending the receiving document originals, please make copies to send to Goods
Receipt Section. At the time delivery completes the total order, send the original
receiving documents to Goods Receipt with the proper notes to complete the receiving
procedures.

If there are any problems, receiving should call Central Office Procurement to help solve the
problems at 267-6999.

X.1

SALE OF FARM PRODUCED COMMODITIES

Designated farm products shall be sold to those whose bids are accepted and approved by appropriate
staff or the Board of Corrections when required. The sale of farm produced commodities is
processed by the Procurement Section Farm Buyer and Procurement Manager. The buyer will obtain
bids and forward to the Deputy Director and the Procurement Manager. After being advised by the
Procurement Manger to accept the bids, the buyer will process the final paperwork to complete the
sale.

Listed below is the procedure used by commodity:

Oat, straw, raw milk, pecans and poultry:
Sold by phone bids received from various companies or
individuals, within a 48 hour time frame. Approval is given by
Deputy Director.

Wheat, milo, and soybeans:
Sold at the direction of the Board and Executive Staff, bids are taken from eligible buyers
by the Farm Administrator, reviewed by the Procurement Manager, and presented to Deputy
Director for necessary approvals. May also be bid through Marketing Coop with
necessary approvals.

Rice:
Rice may be sold by the bid process or through a rice co-op. Sale procedure or selection of
co-op may be made by Director, Deputy Director of Operations or Farm Administrator, and
appropriate Board member(s).

Cotton:
Seal bids are taken through eligible cotton brokers by the Farm Administrator. Seal bids
are reviewed by the Procurement Manager and submitted to Deputy Director for
necessary approvals by the Director and designated Board member(s). Results of sale are
submitted to the next regularly scheduled Board of Corrections meeting for ratification.

Livestock (to include pigs, cows, and horses):
The Farm Administrator and the Deputy Director shall determine a need to sell excess
animals. The Procurement Section shall be notified of such excess. Animals shall be sold at
an approved auction house as determined by Director and Deputy Director or competitive
bids taken and approved by the Procurement Manager, Deputy Director and the Director.
When competitive bid process is used, the Procurement Section will advertise in a paper of
general circulation for three days is given for submission of bids. Award of bid will be
based on price as it best serves the interest of the State of Arkansas.
X.2


Dogs:
Sold as warranted after advertising in a paper of general publication, within a 10 working
day time frame.

Cowhides:
Phone bids to various companies, vendors, and individuals, within a time frame of 48 hours.
Approval is given by Deputy Director.

Other Excess Products:
Excess products may be sold to employees as designated by the Administrative Regulation
referencing Staff Assignments, Housing, and Emoluments.

Excess products may be sold through telephone bids to various companies, individuals,
and/or growers contract upon approval of Deputy Director and Director.

XI.1
CONVEYANCE OF NATURAL RESOURCES

A. Sale of Timber

The sale of timber on State lands must follow the usual procedures for sale of State property,
which is defined in the State Procurement Law A.C.A 19-11-242. The Procurement Section
will execute the required paperwork with the Office of State Procurement in order to
complete the transaction. Further, in accordance with State Forestry Statute A.C.A 15-31-106
and 15-31-202, the Department of Correction may request assistance in the determination of
value for the subject timber.

B. All Natural Resources

In accordance with Act 1315 of 1997, the Procurement Section shall report the conveyance of
any natural resource owned by the Department of Correction to the Arkansas Legislative
Council no later than thirty (30) days after the end of the quarter during which the conveyance
occurred.

This report will include:

1. the parties to the conveyance;

2. the date of the conveyance;

3. the location of the property conveyed;

4. the compensation received by the Department of Correction for the conveyance;

5. changes in the lease agreement if the conveyance is a lease; and

6. any other information requested by the Council.

C. Board Approval

1. Approval of conveyance of timber or other natural resources must be with Board
approval as outlined in AR 118 of 1991 and AD 98-03 dated 3/20/98.

XII.1

ACQUISITION OF SURPLUS PROPERTY

Upon determination by the Unit Warden, this information will be utilized to obtain property from
either the Marketing and Redistribution or Federal Surplus Property Sections of the Office of State
Procurement Property, as defined herein, includes both items of equipment and consumable supplies,
unless otherwise defined.

1. Marketing and Redistribution Section

The Procurement Section of the Departments Administrative Services Division
will serve as the coordination point for acquisitions or property from this source.
Responsibilities of the Procurement Section including the following:

a. Periodically screen available property handled by the Marketing and
Redistribution Section in order to fill specific requests for property
by units.

b. Periodically screen available property handled by the marketing and
Redistribution Section in order to obtain items that can be used by
the Department.

2. Federal Surplus Property

The Procurement Section of the Departments Administrative Services Division
will serve as the coordination point for acquisition of property from this source.
Responsibilities of the Procurement Section include the following:

a. Periodically screen available property located at the Federal Surplus
Property Section in order to fill specific requests for property by units.

b. Periodically screen available property located at the Federal Surplus
Property Section in order to obtain items that can be used by the
Department.

c. Accompany employees of the Federal Surplus Property Section to federal
facilities to screen property that might be used by the Department, i.e.,
current sites are Pine Bluff Arsenal, Little Rock Air Force Base, Fort
Chaffee, Red Stone Arsenal and Memphis Depot.

3. Specific requests for items of property - both sources

a. The requesting unit will submit the standard Departmental requisition to
the Procurement Section.

b. Upon location of the item (s), the Procurement Section will notify the
requester that the item(s) has been located and is available to be screened.
If the requesting unit wishes to accept the item (s) with no screening, the
XII.2
Procurement Section will complete the acquisition transaction. If the
requester wishes to screen the item(s), such screening must be
accomplished no later than close of business of the third work day
following the day of notification to the requester that the item(s) is
available for screening. In the event that the requester does not give
authorization to the Procurement Section to obtain the item(s) unscreened,
nor does not screen the item(s) within the allowable time frame,
instructions will be provided by the Procurement Section that the
Department of Correction does not wish to acquire the item(s).


c. The Procurement Section will complete the required paperwork with the
Office of State Procurement in order to complete the acquisition
transaction.

d. The requesting units budget will be charged with the cost of the item(s) in
absence of instructions to do otherwise. Such instructions to charge the
cost of the item(s) to other than the receiving units budget will require
approval of the Budget Section of the Administrative Services Division.

4. Screening for items that might be usable - both sources

a. Upon location of item(s) by the Procurement Section, the following
instructions will apply:

(1) In the event that time or circumstances does not permit the
Procurement Section to survey the units of the Department in order
to establish a need for the item(s) prior to acquisition of
same, the Manager of the Procurement Section, with concurrence
of the Assistant Director for Administrative Services or the Fiscal
Manager, may authorize acquisition of the item(s).

b. As soon as practical, the Procurement Section will execute the standard
Departmental requisition for the item(s) and obtain written approval of
Assistant Director for Administrative Services. The Directors Budget
Reserve budgetary account will be charged with the total of the item(s).
At the time of assignment of the item (s) to a unit (s), the receiving units
budget will reimburse the Directors Reserve budget for the cost of the
item(s) received.

5. The requirement for possible extended storage and added administrative functions
surrounding acquisitions of item(s) that have not been requested by the units are
to be weighed against the savings to be derived from the acquisition. If the
decision is not clearly in favor of acquisition of the item (s), the acquisition is to
be passed up.

XII.3
6. Transportation of the item(s) of property from the point of destination to the receiving
unit will be arranged on an individual transaction basis by the Manager of the
Departments Procurement Section.



XIII.1
CANNIBALIZATION

The Arkansas Procurement Law, Act 482 of 1979, as amended, and regulations promulgated
concerning the disposal of surplus and excess commodities instructs state agencies as to the methods
to be used to dispose of or transfer surplus of excess commodities. It also establishes procedures
relating to trade in of these commodities.

The present guidance, however, is silent as to the subject of secondary utilization or cannibalization
of non-expendable commodities. Due to this omission and in accordance with the authority granted
by Regulation 4-55-2(A) (9) (b) the following instructions are issued:

Cannibalization or secondary utilization is the process whereby a non-expendable surplus or excess
commodity is dismantled for parts to be used as replacements or as components of other machines or
devices.

The disassembly of an item for use of its component parts for secondary use or repair and
maintenance of a similar item will only be authorized if such action has greater potential value and
benefit than disposal or trade in of the item in its existing form.

Authorization for cannibalization or secondary utilization should be requested to the Property
Control Manager to obtain permission from Marketing and Redistribution prior to any disassembly
or removal or component parts.

When such authorization is granted a Certificate of Property Disposal (CPD) document will be issued
by Marketing and Redistribution requiring the unit performing the cannibalization to complete the
document and verify that cannibalization has been done. The unit performing the cannibalization
will return a copy of the completed document to the agencys Property Control Manager and mail the
original directly to Marketing and Redistribution. The item will be removed from the agencys
property listing.

Any residual material remaining after cannibalization must be processed through Marketing and
Redistribution for sale as scrap or for content value.

Motor vehicles eligible to be registered for highway use, (cars and trucks), whether registered or not,
may be cannibalized after obtaining authorization. These vehicles will not be removed from the
property listing until the carcass of the vehicle has been disposed of by Marketing and Redistribution.
In no event should more than ninety days elapse between authorization of cannibalization and
processing the carcass for disposal by Marketing and Redistribution. These procedures do not
exempt an agency from compliance with any other requirements relating to the disposal or
acquisition of motor vehicles.

XIV.1
MAINTENANCE OF STATE VEHICLES

The enclosed statements pertaining to usage and care of state vehicles are to be complied with.

1. Care and maintenance of state owned vehicles
a. All vehicles will minimally be maintained in accordance with
recommendations of the manufacturer of the vehicle and/or procedures for
maintenance issued by the Departments Procurement Section. Generally,
the care and maintenance of the vehicle is to provide a vehicle that is kept
in a safe operable condition as well as a vehicle that reflects an appearance
that is at best pleasing, and at the least is not offensive.

b. The responsibility for care and maintenance of vehicles that are assigned to
individual employees is that of the assignee.

c. The responsibility for care and maintenance of vehicles that are assigned as
pool, or general use vehicles is that of the supervisory employee who is charged
with responsibility for the pool vehicles, or the supervisory employee of the
functional area that has primary use of the vehicle(s).

2. Transferring or Loaning Vehicle
Transferring or loaning a vehicle to another unit must have a Movement of
Property Form filled out and sent to Property Officer at Central Office
before transaction is done.

3. Monthly Vehicle Report
a. The monthly vehicle report is to be filled out each time someone uses a state
vehicle
Example: Starting mileage
Ending mileage
Gas put in vehicle
Destination
Driver

b. At the end of each month the report is to be turned into person in charge of
vehicles at each unit.

c. The monthly vehicle report is due to Admin East attention Vehicle manager,
procurement division by the 10
th
of the following month.

d. If there is a repair or parts purchased for a state vehicle, that repair should be
noted on the back of the vehicle report with date, where work was done,
what work was done and price of work. Also, attach copy of invoice or
purchase order to the vehicle report.




XIV.2


4. Use of agency credit cards
Agency credit cards will only be used for the purchase of fuel. Other usage of
credit card will only be for emergency only: such as tire repair, fuses, etc., which
enables you to return to the unit for repairs.

Other items of expenditure, i.e., tires and tubes, batteries, tune-ups and major
repairs are to be obtained with prior approval of the Departments Procurement
Section through regular procurement procedures.

The use of agency credit cards for items of expense relative to vehicles, other than
in the manner outlined above, will require that the appropriate Assistant Director,
Warden or Administrator justify the expenditure in writing prior to the use of
Departmental funds to pay for the expense. Other wise, the employee who
misused the credit card will bear the expense.

All fuel receipts are to be signed and name printed on each ticket and then attached
to the vehicle report.

Each unit will be sent a copy of the fuel bill each month. Fuelman and ExxonMobil
will be sent by email to each unit. After the Wardens, Administrators, etc, have
reviewed the statements, an email response should be sent back to the Vehicle
Manager stating agreement with the bill or noting exceptions to the bill. This will be
kept as a permanent record. All areas using fuel cards must comply with this
process.






XV.1
WORKSHOP-MADE PRODUCTS

Ark. Code 19-11-501 Act 405 of 1973 established a committee on Purchase of Workshop-Made
Products which has the responsibility of selecting commodities which shall be procured exclusively
from non-profit workshops.

Purchase requests for workshop-made products are handled the same as other purchase orders issued
by the Procurement Section but shall be forwarded to:

Department of Human Services
Division of Rehabilitation Services
Facility Consultation & Planning Section
P.O. Box 3781
Little Rock, AR 72203

The items listed in the Workshop-Made Products price list are manufactured only upon receipt of an
order. Normal delivery time should be within fourteen days after the workshop receives the purchase
order.

A listing of items and prices can be obtained from the Procurement Section at the Central Office.


XVI.1

SALE OF SURPLUS EQUIPMENT

If an item is considered to be no longer useful to the Department, the appropriate Unit Inventory
Officer will complete a Request for Movement of Property form to include a description of the item
and ADC number and obtain approval of the immediately responsible ADC Property Official. The
Request for Movement of Property form is to be forwarded to the Department Property Officer who
will contact Marketing and Redistribution for instructions for disposal of the item.

XVII.1
POOL VEHICLES FOR CENTRAL OFFICE


I. The pool vehicles are for the use of Administrative Pine Bluff Complex employees for
official business. A vehicle reserve log is maintained at the Assistant Director of
Administrative Services secretarys desk, extension 6241. Reservations should be made as
far in advance as possible to assure the availability of a vehicle. However; when employee
cancels a reservation it should be removed from the vehicle reservation log. Only log
vehicles out if you are actually going to use that day. Logging vehicles out too have one in
reserve is prohibited.

II. The gasoline pumps at the Diagnostic Unit should be utilized whenever possible to fuel the
pool vehicles. If the tank is below 1/2 when returning the vehicle, the user must refill the
vehicle at the Diagnostic Unit. A vehicle logbook is provided to record the ending mileage,
servicing of vehicles, and also to report any mechanical disorder.

III. If a pool vehicle is involved in an accident, an accident report form is located in the glove
box. Information whenever possible should be obtained for the accident report at time of
accident. The Insurance Officer, extension 6252, should be contacted immediately to
process accident claims and reports.

IV. If a pool vehicle is not available and travel is essential, the traveler must obtain approval
from his/her immediate supervisor for vehicle mileage reimbursement for using a personal
vehicle.

V. If pool cars are to be taken home overnight; it will require prior approval from the
Assistant Director of Administrative Services.


XVIII.1
SALE OF STATE LAND


The procedure to be followed in sale of state land and for other purposes according to Act 982 of
1987.

State Boards or Commissions having supervision of the affairs of the charitable, penal, correctional,
educational, and other institutions of the State of Arkansas are empowered from time to time to sell
for cash in hand upon compliance with the provisions of this Act, the lands, in whole or in part,
belonging to, or under the supervision or control of the said state agency, or belonging to the state
and held for use or benefit of the state agency. State agencies are empowered to transfer land in
whole or in part to State Building Services for use of that agency or other state agencies. In the event
that State Building Services sells the land, any proceeds shall be deposited in the State Treasury as a
non-revenue receipt, into fund which the agency transferred the land to State Building Services.

If the agency elects to sell its land, the Director of State Building Services shall obtain services to
appraise the land.

The appraiser should be a certified member of the American Institute of Real Estate Appraisers. The
appraiser cannot be directly nor indirectly engaged in the purchase of the land or give information to
anyone about the land.

The Director of State Building Services shall furnish all information and recommendations to the
Governor. The Governor, if he approves the proposal to sell, shall transfer information to the
Construction Administrator of State Building Services. The Construction Administrator of State
Building Services shall give notice of the terms of the sale by publication in one newspaper regularly
published in Little Rock, Arkansas, by four weekly insertions. The notice shall specify a time and
place 30 days after first ad is placed for sealed bids to be opened at State Building Services. Each
bid shall be accompanied by the bidders check, payable to the order of the State agency, and drawn
upon and certified by a bank or trust company doing business in this state, in the amount of equal to
1/10 of the bid. Checks of unsuccessful bidders shall at that time be returned.

Upon receipt from successful bidders of full amount of bid, the state agency shall execute the deed.
All offers and acceptances shall be conditional upon approval and/or review by the State Building
Services Construction Section, Office of the Attorney General and other State Agencies as
appropriate.

Provided that if any agreement for the sale of any land by the state or any of its institutions by the
Board of Trustees has been made previous to Act 982, it will not be necessary for notice of
publication, appraisal or bidding; but the sale of the land will still require Governors approval.
Provisions of this act shall not apply to the sale of land by the Commissioner of State Lands.

The provisions of this Act shall not apply to the sale of land by the Commissioner of State Lands.

XIX.1
PROFESSIONAL AND CONSULTANT CONTRACTUAL SERVICES

I. Professional Services Contracts

These are contracts in which the relationship is that of an independent contractor. Services to
be rendered consist of the personal services of an individual or individuals which are
professional in nature. The contract will specify results to be obtained from the contract
rather than detailing the manner in which services are to be provided. Examples of
professional services are medical services provider, surveyors, engineer and architects.
Please note that some services may be obtained by either competitive bidding through the
Office of State Procurement or through issuance of a professional service contract, i.e., land
leveling services. The Department will require quote bids for services when practical.

II. Consultant Services Contracts

These are contracts in which the service to be rendered is primarily giving of advice by
the contractor on a problem or problems facing the department. The contract will specify
results expected from the contractors services and the advice or assistance to be
provided. Examples of contractual services are data processing systems design and
development, and management consultants. The Department will require quote bids for
services when practical.

III. Agency, Contractor Relationship

The department may not exercise day-to-day managerial control over the contractor, nor
can the contractor be an employee of the Department of Correction or another state agency.

IV. Procurement of Professional or Consultant Services

A. Contracts $5,000 or less.

1. The department may issue a purchase order for services in lieu of the
professional or consultant services contract, if total services do not exceed
$5,000.

2. Issuance of purchase orders cannot be used to circumvent the intent of the
General Assembly concerning professional and consultant services, i.e.,
subsequent business done with the contractor in the same fiscal year in which
the purchase order was utilized will require that the initial contract (purchase
order) and subsequent contracts are reported to the Office of State Procurement
for approval.
XIX.2

B. Contracts in excess of $5,000 and less than $25,000


1. The approval process is coordinated by the Procurement Section.

2. Method of source selection must be specified as one of the following:

a. SBS Criteria should only be selected if the agency, college or
university processes its contracts through Arkansas State Building
Services. Colleges and Universities that use the SBS criteria but
are exempt from SBS review must select from alternate
procurement options available.

b. Emergency procurements may only be requested by the agency
chief fiscal officer or equivalent or director, division director or
deputy director of an agency, college or university, and must be
reviewed by the Co-chairpersons of the Legislative Council or
Legislative Council Review Committee prior to the beginning time
and date of the contract. The Emergency procurement process
allows a contract to be implemented prior to review by the full
Legislative Council Review Committee. When time allows,
Emergency procurements should be made using some form of
competitive bid process.

c. Request for Proposal (RFP) method of procurement allows the use of
a set of criteria, in addition to cost, that are considered in the
evaluation process of each response. If this procurement method is
utilized, include as an attachment, the list of criteria other than cost
that were given consideration in the awarding of the contract.

d. Request for Qualifications (RFQ) method of procurement must
have prior approval from the Office of State Procurement.

This option has customarily been used to develop contracts for
legal, architectural, engineering and land surveying services, but is
also the preferred method of source selection for certain other
services.
XIX.3
e. Competitive Bid indicate when the award of the contract is made to
the qualified respondent meeting specifications that submits the
lowest bid.

f. Intergovernmental contracts are those involving agreements between
two or more Arkansas agencies, colleges and or universities. (See 19-
4-1712 No. 5) All intergovernmental contracts with a total dollar
value (compensation plus reimbursement) that exceeds $25,000 are
required to be reviewed by the Performance Evaluation and
Expenditure Review Committee (PEER) prior to the execution date of
the contract. Intergovernmental contracts do not require 98-04
disclosure forms.

g. Sole Source designation requires separate justification and either
public notice of intent to award or written justification as outlined in
the Procurement Regulations for Professional and Consultant Services
Contracts. The justification must fully address:
why the service is needed;
the methods used to determine that a lack of
responsible/responsive competition exists for the service;
how it was determined that the provide possesses exclusive
capabilities;
why the service is unique;
whether or not there are patent or proprietary rights which make
the required service unavailable from other sources;
what the agency would do if the provide/service were no longer
available, and
any program considerations which make the use of a Sole
Source critical to the successful completion of the agencys task.

h. Other as a procurement method is limited to a few select contracts
that do not fit into any of the previous procurement designations
listed. Agencies, colleges and universities are requested to contact the
Office of State Procurement for guidance in the use of the selection.

C. Procurement of Attorneys Services

All requests for legal representation are to be requested from the Office of the
Attorney General. In the event that representation is declined by the Attorney
General, whether in accordance with Act 863 of 1985 or for other reasons, written
permission from the Governor and the Attorney General to utilize outside legal
services must be submitted along with the Professional Services Contract. All
contracts for legal services and amendments must be approved by the Board of
Corrections.


V. Arkansas Legislative Council Review

XIX.4
Any contract exceeding $25,000 in a single fiscal year, or twenty actual working days, will
require review of the Arkansas Legislative Council. In considering your requests for
professional and consultant services, please keep in mind that the following dates and
considerations must be observed.

A. General Guidelines, Office of State Procurement

1. The contractors date to start work must be five or more days after the
date of review by the Legislative Council.

2. The contract must be submitted to the Department of Finance and
Administration no fewer than ten working days before the meeting of the
Review/Peer Sub-Committee of the Arkansas Legislative Council. The date
the contract must be at the Department of Finance and Administration will
generally fall between the 15th and the end of the month in order to get
scheduled for the next months meetings of the Arkansas Legislative Council.

B. Method for Suspension of the Rules

1. The Director must submit a letter to the appropriate Legislative Sub-
Committee Chair (along with the contract) stating why the contract was not
submitted in time to be scheduled and why the suspension of rules is needed.
The Director may also seek a Legislative Sub-Committee member to request
the Chair to suspend the rules so the request may be considered. Completion
and submission of contracts within established time frames is preferred.

2. The Office of State Procurement must receive the letter of request two days
preceding the meeting of the Review/Peer Sub-Committee of the Arkansas
Legislative Council.

3. If the contract is reviewed, a representative of the department should be
present at the Sub-Committee meeting.

C. Review by Additional State Agencies

Please keep in mind that certain contracts must be first reviewed by other state
agencies prior to submission of the contract to the Department of Finance and
Administration. This should be kept in mind so as to allow ample time to meet the
date in V.A. 2. Additional agency reviews required are:

1. State Building Services, architectural and engineering services and interior
design.



D. General Guidelines for Review and Approval

XIX.5
1. Meeting of Peer or Review Sub-Committee of the Arkansas Legislative
Council

a. Committee sets meeting dates for following at each preceding meeting.

b. Contracts that were provided to the Office of State Procurement ten
days prior to first meeting are reviewed

c. An agency representative is required to attend.

d. If suspension of rules contract, agency representative should be present

2. Meeting of full Legislative Council

a. Held on third Friday of each month

b. If contract is favorably reviewed, contractor can begin work on the
date full council meets (third Friday of each month).

VI. Emergency Approval

In the event an emergency exists, an agency representative must contact one of the co-
chairmen of the Review Sub-Committee for emergency action and approval of the contract.

VII. Responsibilities

The program area that requests the contract must be aware of the various dates and
considerations surrounding approval of professional and consultant services contracts and
submit contracts to the Office of State Procurement (State Building Services and
Department of Computer Services when required).
XIX.6

The Administrative Service Division will assist in contract development based on
information provided by the program area, get contracts typed and obtain signatures, submit
contracts to the proper destination(s) and track and report contract status, reporting to the
program area on dates, deadlines, committee meeting dates and needed committee
appearances by the program area.

VIII. Contracts Between State Agencies

Contracts for grants between state agencies whereby the monies expended are pass-through
federal funds and other contracts require approval only of the Department of Finance and
Administration. The contract document may be executed on the standard Professional
Consultant Services Contract or an acceptable alternative.
XX.1
DEPARTMENT LEASES

1. By Arkansas Statute, Arkansas State Building Services has responsibility to act as leasing
agent for all state agencies. This responsibility applies whether the department is lessee or
lessor. Administrative Regulation 118 directs the department to comply with rules and
regulations of State Building Services pertaining to execution of lease agreements for
space, facilities or land.

The Procurement Section of the Administrative Services Division will act as the
departments agent between State Building Services and the various program areas of the
department in execution of lease agreement transactions.

2. Arkansas Department of Correction as Lessee

A. Agreements for New or Additional Space, Facilities or Land

1. The Assistant Director of Administrative Services will submit a memo to the
Procurement Manager requesting that space, facilities or land be obtained. The
memo should be prepared and submitted as follows:

a. State Building Services regulations require that properly prepared and
approved requests must be submitted no fewer than ninety (90) days
prior to the date that the agreement will become effective. This
should be kept in mind when making your request.

b. The memo should be addressed to the Director, Department of Correction.

c. The following information is to be provided in the memo:

(1) Location of space, facility or land, i.e., street, town, county

(2) Purpose and reason for the lease

(3) Number and list of personnel that will occupy space - if the
request is for office space

(4) Identify any special requirements, i.e., conference rooms,
hearing rooms, libraries, special heating/cooling, etc.

(5) Estimate of square footage, acreage, etc.

(6) Date that the space, facilities or land is needed

(7) Duration of agreement, i.e., length of time prior from start of
lease through completion

d. Upon completion of the memo, forward it to the Property Office for
further processing.
XX.2

B. Renewal Notice of Existing Leases

1. The Procurement Section will notify the Assistant Director of
Administrative Services of the program area no fewer than 120 days
of expiration of the lease agreement that the lease is about to expire.

2. The notification is to be returned to the Property Office within
fourteen days of receipt concerning the wishes of the program area.

3. If there are no recommended changes to the agreement, the lease will
be processed through State Building Services for renewal.

4. If there are recommended changes to the agreement, the lease will be
processed through State Building Services for renewal.

5. If the program area directs that the agreement be to be terminated, the
Property Office will notify State Building Services accordingly.
Any replacement space, facilities or land will be processed in
accordance with instructions for new or additional space,
facilities or land.

C. General Instructions

1. All requests to State Building Services for new or renewed leases will
be signed by the Director.

2. All lease documents will be on formats prescribed by State Building
Services. The Director will sign all such leases as the authorized
agent (lessee) for the department.

3. The Procurement Section will maintain the lease file. Copies of
approved leases will be provided to the Assistant Director of
Administrative Services of the program area upon receipt from State
Building Services.

4. The Property Officer will produce a monthly Leases Status Report to
reflect the status of approved leases and leases in process. The report
will be provided to the Assistant Director of Administrative Services
upon request.





3. Arkansas Department of Correction as Lessor

XX.3
A. Agreements for intra-department leases of office space will be accomplished by
letter to State Building Services for approval. The Director will sign as lessor and
the Assistant Director of Administrative Services of the program area will sign as
lessee.

B. Agreements whereby the department is the lessor and the lessee is other than the
Department of Correction will require approval of the Board of Correction prior to
presentation of the proposed lease agreement to State Building Services. Procedures
enumerated in paragraph II-A will be followed after obtaining approval of the Board
of Correction to execute the lease.

4. Special Use Agreements

A. Short term facility use less than one year requires Facilities Use Agreement Form
signed by the Director (see attachment).
XXI.1
TELECOMMUNICATION EQUIPMENT PROCEDURES

All telephone equipment and accessories pertaining to installation and communication related to
telecommunication shall require approval of the Department of Information Systems. The
Procurement Section of the Administrative Services Division shall act as the Departments agent
between Department of Information Systems, Office of State Procurement and various areas within
the Department. The four areas of communication for Department concerns are: (1) Long Distance
Carrier, (2) Replacement Equipment, (3) Additional Equipment to Existing Equipment - Additional
Phone Lines, etc., (4) New Units Phone Equipment.

1. Long Distance Carriers shall require sealed bids taken by the Office of State Procurement.
Any contract signed for long distance service will be approved by DIS and the Office of
State Procurement.

2. Replacement Equipment - shall require requests from user area with the appropriate
Assistant Director approval and Management Team or Director approval. Quotes will be
taken by the Procurement Section, if necessary, and this information along with letter of
request will be sent to DIS for approval or disapproval. If approved, items must be procured in
accordance with the requirements of the purchasing law and regulation.

3. Additions to Existing Equipment - requests should come from the user area and have
approval of appropriate Assistant Director and Management Team or Director
approval. The Procurement Section will process and locate prospective vendor and
submit request to DIS requesting approval. If approval is granted, a purchase order will
then be issued.

4. New Units Phone Equipment - for system installed in new units, where the contractor is
responsible for phone system, it is responsibility of contractor to gain necessary approvals. If
phone system is not part of contractors bid, then the Construction Administrator shall
submit request to Procurement Section after Director approval providing the Board has
approved as part of initial construction project. Procurement Section will then submit to
DIS for approvals. After DIS approves a request for bid, it will be sent along with DIS
approval letter to State Procurement for formal bid process.

5. All new cell phones and replacement equipment will be approved by the Management Team.
All orders will be placed by the Procurement Section. Cell phone provider will be approved by
Department of Information System. All phones and equipment will be consistent with the state
contract negotiated by the Department of Information System.

XXII.1
INSURANCE

The Procurement Section has responsibility to ensure that various insurance coverage requirements
of the Department are sufficient and are properly maintained. Various coverages include, (1) assets
and (2) liability. The Department Insurance Officer and administration of the Department of
Correction, in conjunction with the Risk Management Section of the State Insurance Department,
determines the various assets coverages that will provide the department with the best return on
monies spent for insurance premiums while concurrently ensuring adequate coverage of the
departments buildings and contents, vehicle fleet and mobile equipment.

I. Disbursing Officer and Employees Honesty Bond

These coverages are obtained by the Risk Management Section of the State Insurance
Department through a blanket policy for state agencies. Basically, coverage extends
to loss sustained by the department as a result of fraudulent or dishonest acts
committed by employees, or failure of employees to faithfully perform their duties or
to properly account for monies and/or property within their realm of responsibility.
The upper limit of liability is $250,000.00 with a $1,000.00 deductible per loss. The
Department Insurance Officer notifies Risk Management when there is a loss.

II. Procurement Functions Bond Coverage

Procurement functions of the department are covered under either the bond of the
State Procurement Director or the Director of State Building Services. If the
Department of Correction receives authorization to have its own purchasing official,
separate coverage would be required.

III. Departments On-Road Vehicle Fleet

Insurance of the departments fleet consists of liability coverage only. Collision or
comprehensive coverage is not cost effective.

In the event that an employee is involved in an accident while driving a vehicle of the
department, the following actions must be taken by the employee:

A. Immediate verbal notification of his or her unit of assignment.

B. Immediate verbal notification of the Department Insurance Office.

C. Completion of an Incident Report as required by Administrative Regulation
005. The Incident Report is to be provided to the Unit Warden or appropriate
supervisor in accordance with respective unit procedure. Additionally, a copy
of the Incident Report is to be provided to the Department Insurance Officer
within three days of occurrence of the accident.

D. In the event that the employee who was involved in the accident is
incapacitated, the immediate supervisor should make required reports.

XXII.2
E. The employee should take appropriate actions to secure property and/or
inmates that are in the department vehicle.

The Department Insurance Officer will obtain the police report of the
accident and provide individual instructions to the unit of assignment of the
vehicle and the driver of the other vehicle(s) (if required) pertaining to
obtaining estimates, etc. In instances where the department has responsibility
to repair its own vehicle, services of the Departments Industries Program
will be used to repair the vehicle, provided that no lower estimate can be
obtained outside the department.

The Department Insurance Officer, upon obtaining the police report of the
accident, will complete and file an Arkansas Motor Vehicle Accident Report,
Form SR-1, when the accident results in either death or injury, or damage to
property in excess of $500.00. The report is to be filed within thirty (30) days
of the accident regardless of which party is at fault. If another vehicle causes
damage to non-vehicular department property, the Department Insurance
Officer will file the SR-1 if the property damage is in excess of $500.00.

IV. Mobile Equipment Fleet

The departments off-road mobile equipment is insured by scheduled coverage. Each
scheduled item of equipment is subject to a $5,000.00 deductible in the event of loss.
Examples of mobile equipment are tractors, combines and farm implements. If a loss
occurs, the unit will notify the Department Property Officer.

V. Building and Contents

The departments buildings and contents are subject to a $25,000.00 deductible per
occurrence in the event of loss. Other coverages that would extend to the loss of an
item, i.e., a piece of mobile equipment insured under the Mobile Fleet Coverage,
would also be in effect if the loss of the item occurred in connection with loss of the
insured structure.

VI. Construction

Construction of facilities for the Department by a private contractor must be insured
by the contractor during the construction phase. When the structure is substantially
ready for occupancy by the Department, the builders liability for insurance coverage
will cease and the Departments will commence. Substantially ready for occupancy
is generally the point in time that the builder has the windows and doors installed and
hands the owner the keys to the structure. Care to ensure that coverage is in effect
should especially be exercised in the event that the Department has begun to utilize
its own forces for completion of the structure, or in the event that supplies and/or
equipment belonging to the Department are stored in or near the structure prior to
such time that the builder has vacated the site. A monthly report is sent out and
Construction is responsible for notifying the Department Insurance Officer that
XXII.3
construction is complete. The Insurance Officer then notifies Risk Management to
obtain building insurance.

Construction of facilities by the Departments construction force should be insured
under Builders Risk coverage during the construction phase. Care should be
exercised to ensure adequate coverage of materials stored on site to be used toward
construction of facilities. At the stage of completion of facilities for occupancy,
Builders Risk coverage should be dropped and Buildings and Contents coverage
obtained.

VII. Radio, Telephone and Data Processing Equipment

The Departments base radios, telephone systems, and computer systems are under
scheduled coverage. Each item of equipment is subject to a $2,500 deductible in the
event of loss. The Department Property Officer notifies the Department Insurance
Officer of new acquisitions.

VIII. Various Reporting Requirements

A. Building and Contents Valuations

1. A Unit Building Valuation Report (Attachment A) and a Unit
Contents, Communication Equipment and New Construction Report
(Attachment B) will be forwarded monthly to the appropriate
Administrator or Warden to ensure proper coverage.

a. The first four columns of the Unit Building Valuation
Report will be completed by the Departments Insurance
Officer prior to distribution.

b. Upon receipt, the Warden or Administrator should verify
the report, note any changes, additions or deletions, sign
and return to the Departments Insurance Officer.

2. The Departments Insurance Officer will verify the reports to ensure
that the building schedule is complete and accurate and that the
amount of coverage is sufficient.

B. Construction in Progress

A Builders Risk Valuation Report (Attachment C) will be forwarded to the
Construction Administrator monthly to ensure adequate coverage.

1. Upon receipt of the report, the Construction Administrator should
verify it for completeness and accuracy and note any changes,
additions or deletions.

XXII.4
2. Upon signing the report, it should be returned to the Departments
Insurance Officer.

Builders Risk Coverage is to be obtained when storage of materials on-site
or actual construction begins. When a Method-of-Finance is submitted, the
Construction Administrator will be asked to supply a date that coverage
should begin (based on the foregoing criteria). The Construction
Administrator should notify the Departments Insurance Officer of schedule
changes requiring an advance or delay in needed coverage.

The Construction Administrator should also notify the Departments
Insurance Officer of project completion schedule changes requiring changes
in coverage to ensure the Departments conversion from Builders Risk to
Buildings and Contents Coverage can be made at the proper time or that, in
the case of outside work forces, that the Department can obtain coverage at
such time that responsibility for coverage ceases with the builder and begins
with the Department.

C. Mobile Equipment Fleet

A copy of the scheduled equipment listing (Attachment D) will be forwarded
to the appropriate Farm Manager, Warden or Administrator monthly. Every
effort will be made by the Procurement Section to identify each new
acquisition at the time of the purchasing and or payment processes. However,
since this is a scheduled policy, an item of equipment may not be insured
from the time of receipt of the item at the using unit until notification is made
to the Procurement Section. Therefore, immediate verbal notification should
be made to the Insurance Officer upon receipt of an item that is to be added to
the Mobile Fleet coverage. Do not wait on such notification to be made via
the Department receiving report. Upon receipt of the report, the respective
Manager or Administrator should review it for completeness and accuracy
and note any changes, additions or deletions. Upon signing the report, it
should be returned to the Departments Insurance Officer.
XXII.5
IX. Periodic Inspection Tours

Periodically, the Departments Insurance Officer will tour units of the Department
along with the surety and representatives of the State Insurance Department to
determine that:

A. A review of buildings and structures to determine that the building
schedule is complete and accurate.

B. Review for potential fire hazards.

C. Other recommendations from the Department, the surety or the State
Insurance Department.
XXII.6
Attachment A



UNIT BUILDING VALUATION

DATE - 10/1/97


BUILD. NO. DESCRIPTION SQ.FT. INSURED AMT. REMARKS

WS100 COLD STORAGE 5088 450,000
REFRIGERATED BUILDING

WS103 WAREHOUSE 6400 141,000

WS105 NEW WAREHOUSE 16200 356,000























VERIFIED BY _______________________ DATE____________ TOTAL $947,000
XXII.7
Attachment B


UNIT CONTENTS, COMMUNICATION EQUIP., AND NEW CONSTRUCTION REPORT


DESCRIPTION 10/1/97 INSURED AMOUNT

CENTRAL WHSE. CONTENTS 55,000

CENTRAL WHSE. INVENTORY 1,315,000

























VERIFIED AT UNIT BY __________________________ DATE____________ TOTAL $1,370,000
XXII.8
Attachment C


BUILDERS RISK VALUATION

10/1/97


PROJ ECT DESCRIPTION INSURED AMOUNT REMARKS

EAST ARKANSAS 632 BED ADDITION $19,700,000

TUCKER 30 BED ISOLATION $ 1,200,000

DELTA CLASSROOMS $ 120,000
























VERIFIED AT CONSTRUCTION BY ____________________________ TURN KEY PROJ ECTS ARE
DATE ____________________________ INSURED BY THE FREEWORLD
CONTRACTOR
XXII.9
Attachment D


TYPE OF MANUF. & YEAR SERIAL ADC INSURED
EQUIPMENT MODEL NO. MODEL NUMBER NO. VALUE

FORKLIFT YALE 0 Y407693 49986 10,000

FORKLIFT YALE 0 P311917 25907 10,000

FORKLIFT HYSTER H30XM 1997 D001H03491U 57202 16,665




























VERIFIED BY ____________________ DATE__________ TOTAL INSURED VALUE $36,665
XXIII.1

VEHICLE SAFETY PROGRAM


The Risk Management Section of the State Insurance Department has developed a vehicle safety
program that must be followed by all state agencies that insure their vehicles through the states
combined fleet insurance policy. Responsibilities of the Department for implementation and
maintenance of the program are contained in this chapter.

I. Responsibilities of the Chief Administrative Officer or His Designee

A. Designee(s) may be appointed as Safety Program Coordinator for different
programs under his authority.

B. Will provide the Department Insurance Officer the name of the Safety
Program Coordinator(s) located at his unit.

C. Responsible for verification of initial roster of employees who will operate a
vehicle on state business.

D. Will have Acceptance of Privilege form (Attachment A) and
Authorization To Obtain Traffic Violation Record form (Attachment B)
completed, signed, and attach a copy of the drivers license for all employees
and inmates authorized to operate a vehicle on state business.

E. Will notify the Department Insurance Officer within three working days of
any additions or deletions in personnel or inmates authorized to operate a
vehicle on state business. Notification of additional personnel or inmates
authorized to operate a vehicle on state business will be accompanied by a
completed Acceptance of Privilege form and Authorization To Obtain
Traffic Violation Record form and a copy of their drivers license.

F. Travel Supervisors signature of mileage reimbursement TR-1 indicates that
the employee has complied with provisions of the Vehicle Safety Program.

G. Will promptly report and send a copy to the Department Insurance Officer of
any traffic violation or change in status, i.e., expiration or revocation of
drivers license of any employee or inmate authorized to operate a vehicle on
state business. Will also report lapse of private vehicle liability insurance of
employees who are authorized to operate personal vehicles on state business.

H. Upon occurrence of an accident in a state vehicle or during operation of a
private vehicle on state business, verbal notification shall be made
immediately to the Department Insurance Officer. Completion of an Incident
Report, as required by Administrative Regulation 005, will be provided to the
Department Insurance Officer within three calendar days of occurrence of the
accident (along with a copy of the accident if available).

XXIII.2
Accidents occurring during personal use of private vehicles will be reported
verbally to the Safety Program Coordinator only if a citation is issued to the
employee.

When a state vehicle is involved in an accident, on or off state property, one
vehicle or multi vehicle, and the estimated damages are $500.00 or more, the
following is required within 24 hours of the time of the accident.

An accident report from a local law enforcement official must be obtained by
the employee. A 005 must be completed by all involved parties. This packet
of information (accident report and 005) must be forwarded to the ADC
insurance officer.

The ADC insurance officer will file the SR-1 on accidents that do not qualify
for insurance coverage. On accidents that do qualify for coverage, the
insurance company will continue to file the SR-1.

II. Central Office Personnel Section

A. Obtain identification from unit on which new employees will be required to
operate a vehicle on state business and have those employees complete and
sign the Acceptance of Privilege form and Authorization To Obtain
Traffic Violation Record form and make a copy of their drivers license,
forwarding same to the Department Insurance Officer.

B. Provide the Department Insurance Officer with a list of terminated employees
on a bi-weekly pay period basis.

III. Department Insurance Officer

A. Upon receipt of a completed Acceptance of Privilege form and
Authorization To Obtain Traffic Violation Record form, and a copy of the
drivers license, a file will be created for that employee or inmate. This file
will contain a Traffic Violation Report(TVR), Acceptance of Privilege
form, Authorization To Obtain Traffic Violation Record form, accumulated
points breakdown, any accident report or investigation and a copy of the
drivers license. This file will be secured against any unauthorized access.

B. A TVR will be acquired from the Arkansas Crime Information Center
(ACIC) terminal on all employees or inmates authorized to operate a vehicle
on state business. Thereafter, a TVR will be acquired annually to update the
vehicle safety program records.

C. Administrative action is required as follows (See the Assessment of Points for
the point values assigned for each moving violation by the Office of Driver
Services):

XXIII.3
1. Drivers who have accumulated 10 through 13 points on their
current traffic violation report Authorization to drive on state
business shall be reviewed by the Agency Director. It is recommended
that the driver be required to complete a defensive driving course.
2. Drivers Who Have Accumulated 14 Through 17 Points On Their
Current Traffic Violation Report Authorization to drive on state
business shall be suspended for no less than five (5) working days.
Authorization shall be reinstated only after evaluation and approval
by the Agency Director. A Defensive Driving Course must be
completed within (60) days after the suspension began.

3. Drivers Who Have Accumulated 18 Through 23 Points On Their
Current Traffic Violation Report Authorization to drive on state
business shall be suspended for no less than ten (10) working days.
Authorization shall be reinstated only after evaluation and approval
by the Agency Director. A Defensive Driving Course must be
completed within sixty (60) days after the suspension began.

4. Drivers Who Have Accumulated Over 24 Points On Their Current
Traffic Violation Report Authorization to drive on state business shall
be suspended for no less than twenty (20) working days. Authorization
will be reinstated only after evaluation and approval by the State
Insurance Commissioner. A Defensive Driving Course must be
completed within sixty (60) days after the suspension began.

5. DRIVERS WHOSE DRIVING PRIVILEGES HAVE BEEN
SUSPENDED OR REVOKED BY THE OFFICE OF DRIVER
SERVICES SHALL NOT BE PERMITTED TO DRIVE ON STATE
BUSINESS FOR THE DURATION OF THE SUSPENSION OR
REVOCATION. DRIVERS WITH RESTRICTED PERMITS MAY
BE AUTHORIZED TO DRIVE ON STATE BUSINESS AS
ALLOWED BY THE RESTRICTED PERMIT.

6. Drivers, who have had an at-fault accident, must attend a Defensive
Driving Class within sixty (60) days following the occurrence.

D. Employment may be terminated, at the discretion of the Agency Director, if
driving privileges have been revoked and failure to drive adversely impacts
the operations of the agency. The Department of Finance and
Administration, Office of Driver Services or the National Safety Council
must approve Defensive Driving Courses. It is recommended that the cost of
the Defensive Driving Course be at the employees expense and not the
Agencys expense.

E. Will promptly investigate and report any accident involving a state vehicle to
the insurance carrier.

XXIII.4
F. Will provide orientation to new employees on the State Vehicle Safety
Program.

IV. Employees Authorized to Operate Vehicle on State Business

A. If available, the driver and passengers must wear seat belts during operation
of a state vehicle, or while operating a personal vehicle on state business.

B. Will verbally report to his Safety Program Coordinator, immediately any
accident occurring during operation of a state vehicle, or while operating a
private vehicle on state business. Verbal notification will be followed with an
accident report, if available, and a completed Incident Report as required by
Administrative Regulation 005. This report contains driver, involved
vehicles, date and time of accident, location of accident, law enforcement
agency contacted to investigate the accident, and description of the accident.

C. Will report within 30 days of the court date any traffic violations occurring
while operating a state or private vehicle.

D. When the employee is authorized to operate his personal vehicle on state
business, he will immediately report to his Safety Program Coordinator lapse
of private vehicle liability insurance on that vehicle.

E. Will immediately report to his Safety Program Coordinator expiration or
revocation of his drivers license.
XXIII.5
Attachment A









ARKANSAS STATE VEHICLE SAFETY PROGRAM
ACCEPTANCE OF PRIVILEGE TO OPERATE A VEHICLE ON STATE BUSINESS





I, ______________________________________________, do hereby accept all responsibilities
placed on me in exchange for the privilege of operating a State vehicle or private vehicle on State
business. I certify that I will maintain liability coverage for at least the minimum limits required by
State Law on each private vehicle being used for State business. I do understand that driving is a
privilege that can be denied me if I fail to reasonably execute my responsibilities. I also understand
that if, as a result of my driving record, I become an unnecessary burden to the taxpayers of Arkansas
I may have this privilege revoked or my employment terminated.







Signature _______________________________________

Date _____________________









RM-VS 100(Rev.9-97)
C-200-34
XXIII.6
Attachment B




AUTHORIZATION TO OBTAIN TRAFFIC VIOLATION RECORD



You are hereby authorized to obtain my Traffic Violation Record from the Office of
Driver Services as permitted by Arkansas Code Ann. 27-50-906 and 27-50-908. This
record shall include material normally excluded by Arkansas Code Ann.
27-50-802.

My signature below shall constitute consent for the release of such records to the
Arkansas Department of Correction.


Name (printed): ______________________________

Signature: ___________________________________

Date: _______________________________________

Date of Birth: ________________________________

D.L. Number: ________________________________

Unit Assigned To: ____________________________









Form RM-VS200 (Rev 9-97)

PURCHMAN